Best 5% Interest Savings Accounts Of April 2024 (2024)

We compared 73 online savings accounts offered by 53 nationally available banks and credit unions to find the best 5% interest savings accounts (or accounts with interest rates close to 5.00% APY). Learn why we picked each account, compare their pros and cons and access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of April 15, 2024.

• Star rating: 4.0
• Annual Percentage Yield: 5.10%
• Minimum Deposit Requirement: $0
• Monthly Fee: $0

What We Liked

BMO Alto’s Online Savings Account offers unlimited transfers and withdrawals with no fees or minimums. Plus, it offers 5.10% APY on any balance. Notably, this account also allows unlimited transfers and withdrawals, making it ideal for those planning to move money frequently.

What We Didn’t Like

This account only allows two methods of funding your account. It doesn’t offer checks or debit cards, either. But perhaps most importantly, customers should know that BMO Alto doesn’t have an app—just an online platform.

Who It’s Best For

This account is best for those who want a guaranteed competitive interest rate on any size savings balance. It’s also a great fit for customers who make frequent transfers in and out of their savings and don’t want to be charged for doing so. Customers who appreciate mobile banking will need to choose another account since BMO Alto offers only an online portal.

• Star rating: 3.9
• Annual Percentage Yield: 5.15%
• Minimum Deposit Requirement: $100
• Monthly Fee: $0

What We Liked

The Bread Savings High-Yield Savings Account offers a 5.15% APY with a relatively low minimum balance threshold, and it doesn’t charge any monthly fees. It also offers unlimited deposits with mobile checks and ACH transfers. If you’re looking for a simple savings account, or if you happen to receive a lot of paper checks, this could be a good fit.

What We Didn’t Like

While there’s no monthly maintenance fee, customers do need to have at least $100 in their accounts to earn the 5.15% APY. This account doesn’t offer checks or debit cards, and Bread Financial doesn’t offer checking accounts.

Who It’s Best For

The Bread Savings High Yield Savings Account will work best for those who prefer to bank digitally and who don’t have a need to deposit or withdraw cash. With its high interest rate and low fees, this account is ideal for regular saving and earning.

• Star rating: 3.8
• Annual Percentage Yield: 5.05% APY on balances of $5,000 or more, 0.25% APY on balances less than $5,000
• Minimum Deposit Requirement: $100
• Monthly Fee: $0

What We Liked

CIT Bank’s Platinum Savings account offers a highly competitive interest rate for those with a balance of at least $5,000, and there are no monthly fees to cut into interest earnings. CIT Bank offers a checking account, too, which can make it easier and more convenient to fund your savings. For people who plan to keep their savings balances high, this account could fit the bill.

What We Didn’t Like

If your Platinum Savings balance is less than $5,000, you’ll only earn the lower APY. This account also requires a minimum deposit of $100. Customers who want to bank with Android devices should know the CIT Bank app receives mixed reviews on Google Play.

Who It’s Best For

CIT Bank’s Platinum Savings is best for customers who have at least $5,000 to save. The high minimum balance requirement to earn better interest could serve as a motivator to avoid dipping into your savings if you think that could work for you. Otherwise, choose another account.

• Star Rating: 3.8
• Annual Percentage Yield: 3.00% to 5.00%
• Minimum Deposit Requirement: $0
• Monthly Fee: $0

What We Liked

The Varo High-Yield Savings Account is packed with benefits to help you reach your financial goals. In addition to earning 3.00% APY without charging a monthly fee and up to 5.00% APY by meeting specific requirements each month, it includes a round-up feature and an automatic paycheck transfer option. Varo Bank is an online-only bank designed for on-the-go users with a highly-rated mobile app and a large ATM network.

What We Didn’t Like

Varo High-Yield Savings Account customers earn 3.00% APY without charging a monthly fee and up to 5.00% APY by meeting specific requirements each month. You also have to meet two conditions to qualify to earn 5.00% APY: You have to receive at least $1,000 in monthly direct deposits, and you have to end each month with a positive balance in all your Varo accounts.

Who It’s Best For

Customers who want savings tools built right into their accounts—without any fees attached—will appreciate all that Varo has to offer. Since Varo has a solid mobile app and helpful features for set-it-and-forget-it saving, this account is best for banking on the go.

To create our list of the best 5% interest savings accounts, Forbes Advisor analyzed 73 high-yield savings accounts from 53 financial institutions, including traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 12 data points within the categories of APY, restrictions and limitations, fees, access, customer experience and account minimums.

Below are the weights we assigned to each category:

• APY: 20%
• APY restrictions and limitations: 20%
• Fees: 20%
• Account minimums: 15%
• Customer experience: 15%
• Access: 10%

As a result, accounts with the highest APYs and lowest restrictions and fees ranked highest on our list.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.

• What Is a 5% Interest Savings Account?
• Benefits of a 5% Interest Savings Account
• How Can I Get 5% Interest on Savings?
• Where Can I Get 5% Interest on My Savings Account?
• How To Choose a 5% Interest Savings Account
• How To Apply for a 5% Interest Savings Account
• Alternatives to 5% Savings Accounts
• How To Maximize APY on Savings
• Recap: Best 5% Interest Savings Accounts 2024
• Frequently Asked Questions (FAQs)

A 5% interest savings account is a type of savings account that pays an annual percentage yield (APY) of around 5%. If you have $1,000 in a 5% interest savings account, you’ll earn $50 in interest over the course of a year, compared to only earning $1 in a traditional 0.10% interest savings account.

While 5% interest savings accounts can help you maximize your savings, some banks may require you to set up direct deposits or maintain a minimum balance to earn the advertised APY. There may also be caps on how much of your balance can earn the advertised rate.

A 5% interest savings account offers many benefits, such as:

• Higher earnings. A 5% interest savings account earns significantly more interest than a traditional savings account, which might earn as little as 0.01% APY.
• Security. Savings accounts protect your savings—and interest earnings—with FDIC or NCUA insurance.
• Separate savings. Avoid confusion and accidental spending by keeping your emergency fund and other savings separate from your checking account.
• Digital banking. Many 5% interest savings accounts are offered by online banks and fintech companies. This means most accounts offer online and mobile accessibility for on-the-go banking.
• Flexibility. With 5% interest savings accounts, you’ll get a rate on par with the most competitive certificates of deposit (CDs)—without the strict limitations on deposits and withdrawals.

In today’s market, there are plenty of accounts that offer 5% interest on savings. High-yield savings accounts are often a good choice, but CDs and money market accounts are also worth considering.

Start by comparing accounts that offer 5% interest. We listed our top-rated choices for 5% interest savings accounts above, but there are other accounts with similar rates. Next, check for any eligibility requirements you must meet to earn 5% interest. Some accounts may have direct deposit or minimum balance requirements to qualify for the highest advertised interest rate.

Not all accounts have minimum requirements, though. If you’re concerned about being able to meet specific criteria, choose an account that earns 5% on all balances—no strings attached.

To start earning 5% interest on your savings, simply open one of these accounts and make an initial deposit.

To get 5% interest on your savings account, you first need to check what rate your bank offers. If your account pays up to 5.00% APY but you’re not yet earning this rate, you may need to meet specific requirements to qualify for the highest yield. This could mean receiving a certain amount in direct deposits each month, meeting a minimum balance or something else.

If your account doesn’t offer a high APY, you probably need to switch to a high-yield savings account that does. Not only do many of the best high-yield savings accounts pay 5% interest, but some offer even more. Currently, you can find 5% interest savings accounts at Milli, M1, Bask Bank, UFB Direct, Salem Five Direct, BMO Alto, Bread Savings, CIT Bank and Varo Bank.

When looking for the best 5% interest savings account to fit your needs, here are a few things to keep in mind:

• Find a competitive APY. The best 5% interest savings account should offer an APY of around 4.00% to 5.00%. Anything less than that, and you might not be getting the best deal.
• Look for restrictions. Just because a 5% interest savings account has a high APY doesn’t mean you’ll earn that rate on your entire balance. Read the fine print to see if the interest rate only applies to a portion of your balance and if there are any requirements to earn it.
• Compare fees. Many banks and credit unions offer high-yield savings accounts with no monthly fees, but it’s still worth checking to make sure. Any fees you pay will eat into the interest you earn.
• Consider the customer experience. How easy is it to access your money? Can you deposit and withdraw funds quickly, or does it take days? Consider the customer service options that a bank or credit union offers as well.

You can open any of the best 5% interest savings accounts online, and it usually takes 15 minutes or less. Just follow these steps:

1. Research institutions that offer 5.00% interest savings accounts to find one that best suits your needs.
2. Navigate to that bank’s website, and start the application process online.
3. Provide your name, address, Social Security number and other personal information to open the account.
4. Verify your identity using a valid driver’s license or passport if you’re asked to upload one.
5. Submit your initial deposit.

Once you’ve completed these steps, consider setting up savings builder tools, such as round-ups or recurring automatic deposits into your savings account.

If you don’t think a 5% interest savings account is right for you, there are other ways to save money and earn interest. Here are a few options to consider:

• High-yield CDs:The best CD rates are generally higher than savings account rates. This is because you agree to lock your money up for a set period of time in exchange for a higher yield. If you know you won’t need your money for a while, opening a CD can be a low-risk way to get started with investing.
• Money market accounts: Like high-yield savings accounts, the best money market accounts offer higher interest rates than traditional savings accounts. Plus, many come with an ATM card and even checks, so you can access your money more conveniently.
• Index funds: Index funds offer diversification and the potential for an even higher return than the best 5% interest savings accounts. But because your money is in the stock market, there’s always the risk of loss.
• 401(k): Making regular contributions to your 401(k) can be a great way to save for retirement and grow your wealth for the long term. You can invest in stocks, bonds and other assets within your 401(k) account. Plus, you may get an employer match to sweeten the deal.

If you’re looking to maximize your APY, a 5% APY savings account is one of the best options. Here are some tips to help you get the most out of your interest earnings.

• Shop for the best rates. Look for a savings account with a high APY on most or all balances. Online banks tend to offer the highest interest rates. Some banks offer promotional rates, but make sure you read the fine print to avoid any surprises.
• Avoid fees. Monthly service fees and other unnecessary charges can eat into the interest you earn. Although many banks offer ways to waive monthly account fees, it’s best to go with a free 5% APY savings account when possible so you don’t have to worry about meeting waiver requirements each month.
• Meet APY requirements. Some savings accounts require you to regularly meet certain criteria to earn the highest APY. This could include maintaining a minimum balance or making a certain number of transactions each month.
• Automate your savings. Set up an automatic transfer that moves money from your checking to your savings account each month. This will help you grow your balance faster; typically, the bigger your balance, the more you’ll earn in interest.
• Take advantage of compound interest. With a 5% APY, your savings will grow quickly—thanks to compound interest. Make sure you leave your money in the account to take advantage of this.

• Milli Savings Account: Best for Savings Tools
• M1 High-Yield Savings Account: Best for Extra Perks
• Bask Interest Savings Account: Best for Minimal Fees
• UFB Secure Savings: Best for ATM Access
• Salem Five Direct eOne Savings: Best for Simple Saving

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